North Star Charter School gets financial footing

Meridian trustees must still decide if the charter school is stable enough.

broberts@idahostatesman.comJune 12, 2013 

North Star Charter School, which faced heavy debt earlier this year, has enough resources to pay its bills for this year and run the school in 2013-14, school officials say.

But North Star must still convince the Meridian School Board, which issued a letter of defect to the school last spring with concerns over the North Star's financial stability.

The Meridian School District has the charter school's latest information, but the board has not yet made a decision on whether the school has met trustees' concerns, said Linda Clark, district superintendent.

The board meets June 25 to discuss North Star.

Through loans - which it has repaid - access to reserve accounts and an agreement with bondholders to forgo payments of $860,000 next year, North Star has plenty of resources to meet concerns expressed by the board, said Jim Miller, North Star's board chairman.

School officials and bondholders will now begin negotiations on a long-term solution that could give the school sustainable financial relief, Miller said. "I don't see why (the board) wouldn't withdraw the notice of defect," Miller said.

North Star sagged under debt from a 9.75 percent interest rate on construction of an $11.75 million school building in 2008.

The charter school has 920 students.

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